Accumulate Genus Power: Ashish Chugh

ALSO READ See previous views by Ashish Chugh See what other Experts & Brokerages are saying about Genus Power See messages about Genus Power Genus Power BSE | NSE 10/02/12 Are Mutual Funds betting on Genus Power?

Accumulate Genus Power Infrastructures , says Ashish Chugh , Investment Analyst & Author of Hidden Gems.

Chugh told CNBC-TV18, "Genus Power after touching a high of about Rs 1,000 in 2008 and about Rs 280 as its 52 week high is currently available at about Rs 165-170 level. This is primarily on account of the fact that there was a fire in Indian Oil depot in Jaipur because of which the factory of Genus Power, which is in its vicinity was damaged and because of which the stock price crashed. This has been about 5-6 months back."

He further added, "The management believes that the factory will be fully operational in next two months. Now these losses of the company are fully insured, the company has already filed with the insurance company for a claim - if you look at the financials of the company, first nine months there is a loss of about Rs 10 crore, which includes the extraordinary loss of about Rs 56 crore, which means that there is a operational profit of about 26 crore. So once the claim is received from the insurance company, this Rs 36 crore of loss will add as profit for that quarter."

"The company operates in the power sector, they have an order book of close to Rs 925 crore and they have bid for another 1,200 crore worth of orders. Management has been increasing their stake; they have just issued warrants to themselves at Rs 190. So I think that this is a short-term negative, which provides the opportunity to accumulate this stock and I think more money will be made by buying and holding this stock rather than just trading for Rs 5-10."

At 13:47 hrs the share was quoting at Rs 168.10, up Rs 3.25, or 1.97% with volumes of 48,728 shares. Yesterday the share closed up 2.55% or Rs 4.10 at Rs 164.85.

The company touched its 52 week high Rs 281.85 and 52 week low Rs 79.90 on 05 Jun, 2009 and 18 Mar, 2009, respectively. Currently, it is trading -40.36% below its 52-week high and 110.39% above its 52-week low. Market capitalisation stands at Rs 248.63 crore.